Rare Earth Stocks Are Trading Lower Wednesday: What's Going On?

Benzinga

Rare earth stocks dipped after the U.S. and Australia signed an $8.5B deal to expand mining and cut reliance on China. Investors fear new supply could pressure prices despite long-term benefits for global production.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Rare Earth mineral stocks fell on Wednesday after the U.S. and Australia signed an agreement to

00:06strengthen supply chains and reduce reliance on China, and according to Benzinga, Australian

00:10Prime Minister Anthony Albanese said the agreement would back $8.5 billion in projects to expand

00:15Australia's mining and processing capacity, with $1 billion in joint U.S.-Australian investments

00:20planned over the next six months. The U.S. will also fund a 100-ton per year gallium refinery

00:25in Western Australia, and offer up to $2.2 billion in financing for credible mineral projects

00:31through its Export-Import Bank, and according to the BBC, shares of several U.S.-based rare

00:36earth companies fell on Wednesday, following gains on Australian miners earlier in the week.

00:40The decline reflects investor rotation and concerns an expanded global supply for the

00:44new U.S.-Australia agreement could lower prices and compress short-term margins.

00:48For all things money, visit Benzinga.com.

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